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MEDICARE UPDATE
The Final Rule –An In-Depth Overview
SEPTEMBER 12 , 2018
TO RECEIVE CPE CREDIT• Individuals
Participate in entire webinar
Answer polls when they are provided
• Groups Group leader is the person who registered & logged
on to the webinar Answer polls when they are provided Complete
group attendance form Group leader sign bottom of form Submit group
attendance form to [email protected] within 24 hours of webinar
• If all eligibility requirements are met, each participant will
be emailed their CPE certificate within 15 business days of
webinar
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Presenters
Joanne Jones, [email protected]
Camille Lockhart, [email protected]
Chris Murphy, [email protected]
Medicare Update
PDPMSNF QRPSNF VBP
Market Basket
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Final Rule
Link to BKD
Rateshttps://www.bkd.com/services/snf-rate-calculatorsVBP/QRP
2.4% Market Basket
Value-Based Purchasing
VBP Required by 2014 Protecting Access to Medicare Act2% with
hold to fund program
Medicare payment incentive based on performance (30-day hospital
readmissions)
Potential rate increase based on performance
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VBP Incentive Multiplier
Quality Reporting Program
• Penalty if less than 80% of quality reporting data is
submitted
• 2% reduction in the market basket rate
• Claims-based measures
• Assessment-based measures
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QRP-Overview of Reports
Review & Correct Report
QM Reports
Provider Preview Report
QRP Measures New FY 2020
Changes in Skin Integrity Post-Acute Care: Pressure
Ulcer/Injury
Drug Regimen Review Conducted with Follow-Up for Identified
Issues – PAC SNF QRP
Application of IRF Functional Outcome Measure: Change in
Self-Care for Medical Rehabilitation Patients (NQF #2633)
Application of IRF Functional Outcome Measure: Change in
Mobility Score for Medical Rehabilitation Patients (NQF #2634)
Application of IRF Functional Outcome Measure: Discharge
Self-Care Score for Medical Rehabilitation Patients (NQF #2635)
Application of IRF Functional Outcome Measure: Discharge
Mobility Score for Medical Rehabilitation Patients (NQF #2636)
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From RUG-IV to PDPM
Payment Drives Culture
Chris Murphy, CPA
*Spoiler Alert*
• ICD-10 coding: from compliance issue to payment driver
• Rehab minutes: from payment driver to expense
• ADL to functional scoring, capturing patient conditions – The
song remains the same
• The rise of patient-centered care
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PDPM Key Changes
PDPM Functional ScorePatient Characteristics
ICD-10 Reason for Skilled Care
MDS Schedule
Patient-Driven Payment Model
PT OT SLP
Nursing Nontherapy AncillariesNoncase
Mix
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PT PT Base Rate PT CMI PT Adjustment Factor
OT OT Base Rate OT CMI OT Adjustment Factor
SLP SLP Base Rate SLP CMI
Nursing Nursing Base Rate Nursing CMI
NTA NTA Base Rate NTA CMI NTA Adjustment Factor
Noncase Mix Noncase Mix Base Rate
PDPM Case Mix Adjusted Payment
PDPM Components – PT – OT – SLP
• Identification of a Clinical Category• Primary reason for SNF
stay
• Not necessary the reason for hospitalization• Determined by
ICD-10 code on five-day PPS MDS
• Listed in MDS Section I 8000 A
• Surgical procedure done in the hospital may change category •
Will be list of surgical procedures to indicate by in Section J
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PDPM 10 Clinical Categories
Major Joint Replacement or Spinal Surgery
Cancer
Nonsurgical Orthopedic/Musculoskeletal
Pulmonary
Orthopedic Surgery Except Joint Replacement or Spinal
Surgery
Cardiovascular & Coagulations
Acute Infections Acute NeurologicMedical Management
Nonorthopedic Surgery
PT/OT 10 Clinical Categories Collapsed to Four• Major Joint
Replacement/Spinal Surgery
• Nonorthopedic Surgery & Acute Neurological
• Other Orthopedic• Nonsurgical orthopedic/musculoskeletal•
Orthopedic surgery/spinal surgery
• Medical Management • Acute infections• Cancer• Pulmonary•
Cardiovascular & coagulations• Medical management
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PT/OT Function Score
• MDS Section GG – Functional Abilities & Goals• Assessed
during first three days of admission• Documents “usual
performance”
• 10 ADL ActivitiesEating Average Bed Mobility (2)
Oral Hygiene Average Transfer (3)
Toilet Hygiene Average Walking (2)
PT/OT Function Score Calculation
Admission Performance Section GG Code Function ScoreIndependent
or Setup 05, 06 4Supervision or Touching Assistance 04
3Partial/Moderate Assistance 03 2Substantial/Maximal Assistance 02
1Dependent, Refused, N/A or Cannot Walk
Any Code for Not Attempted
01, 07, 09, 10, 11, 88 0
PT/OT Function Score can range from zero to 24
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PDPM PT/OT Case Mix Classification Groups
Clinical Category Section GG Function Score
PT/OT Case Mix Group PT Case Mix Index OT Case Mix Index
Major Joint Replacement or Spinal Surgery
0-5 TA 1.53 1.49
Major Joint Replacement or Spinal Surgery
6-9 TB 1.69 1.63
Major Joint Replacement or Spinal Surgery
10-23 TC 1.88 1.68
Major Joint Replacement or Spinal Surgery
24 TD 1.92 1.53
Other Orthopedic 0-5 TE 1.42 1.41
Other Orthopedic 6-9 TF 1.61 1.59
Other Orthopedic 10-23 TG 1.67 1.64
Other Orthopedic 24 TH 1.16 1.15
PDPM PT/OT Case Mix Classification GroupsClinical Category
Section GG
Function ScorePT/OT Case Mix Group
PT Case Mix Index
OT Case Mix Index
Medical Management 0-5 TI 1.13 1.17Medical Management 6-9 TJ
1.42 1.44Medical Management 10-23 TK 1.52 1.54Medical Management 24
TL 1.09 1.11Nonorthopedic Surgery/ Acute Neurologic
0-5 TM 1.27 1.30
Nonorthopedic Surgery/ Acute Neurologic
6-9 TN 1.48 1.49
Nonorthopedic Surgery/ Acute Neurologic
10-23 TO 1.55 1.55
Nonorthopedic Surgery/ Acute Neurologic
24 TP 1.08 1.09
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Variable Per Diem Adjustment Factor – PT & OTMedicare
Payment Days Adjustment Factor1-20 1.0021-27 0.9828-34 0.9635-41
0.9442-48 0.9249-55 0.9056-62 0.8863-69 0.8670-76 0.8477-83
0.8284-90 0.8091-97 0.7898-100 0.76
SLP Component
• Presence of Three Conditions• Acute neurological clinical
classification• Co-morbidity
• Driven by MDS sections I & O
• Cognitive impairment• BIMS ≤ 12• At least moderate
impairment
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SLP Co-Morbidities
Section I Section I ICD-10 Codes Section O
Aphasia Laryngeal Cancer Tracheostomy Care While a Resident
CVA, TIA or Stroke Apraxia Ventilator or Respirator While a
Resident
Hemiplegia or Hemiparesis DysphagiaTraumatic Brain Syndrome
ALS
Oral CancersSpeech & Language Deficits
SLP Component
• Presence of • Mechanically Altered Diet (Section K)•
Swallowing Disorder (Section K)
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PDPM SLP Case Mix Classification Groups
Presence of Acute Neurologic Condition, SLP-Related Comorbidity
or cognitive
Altered Diet or Swallowing Disorder
SLP Case Mix Group
SLP Case-Mix Index
None Neither SA 0.68None Either SB 1.82None Both SC 2.66Any one
Neither SD 1.46Any one Either SE 2.33Any one Both SF 2.97Any two
Neither SG 2.04Any two Either SH 2.85Any two Both SI 3.51All three
Neither SJ 2.98All three Either SK 3.69All three Both SL 4.19
Nursing Component
• Same RUG IV Major Categories• Extensive Services• Special Care
High• Special Care Low• Clinically Complex• Behavior Symptoms &
Cognitive Impairment• Reduced Physical Function
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Nursing Functional Score
• MDS Section GG – Functional Abilities & Goals• Assessed
during first three days of admission• Documents “usual
performance”
• Functional score ranges from zero to 16
Eating Average Bed MobilityToilet Hygiene Average Transfer
Nursing RUG Function Score CMI
ES3 0-14 4.04ES2 0-14 3.06ES1 0-14 2.91HDE2 0-5 2.39HDE1 0-5
1.99HBC2 6-14 2.23NBC1 6-14 1.85LDE2 0-5 2.07LDE1 0-5 1.72LBC2 6-14
1.71LBC1 6-14 1.43CDE2 0-5 1.86CDE1 0-5 1.62
Nursing RUG Function Score CMI
CBC2 6-14 1.54CA2 15-16 1.08CBC1 6-14 1.34CA1 15-16 0.94BAB2
11-16 1.04BAB1 11-16 0.99PDE2 0-5 1.57PDE1 0-5 1.47PBC2 6-14
1.21PA2 15-16 0.70PBC1 6-14 1.13PA1 15-16 0.66
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Nursing Component
• Important to Note• Determination of the nursing RUG is based
on the RUG
hierarchy, not CMI maximization• Nursing component will be
increased by 18% for residents with
HIV/AIDS• B20 must be on SNF claim
NTA Component
• Calculated based on points assigned for 50 MDS items including
diagnosis or extensive services
• Many of the diagnoses will be based on ICD-10 codes
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Diagnosis/Service Or ICD-10 Points
HIV/AIDS SNF Claim 8
Parenteral IV (high level) 7
IV Medication (post-admission) 5
Ventilator (post-admission) 4
Parenteral IV Feeding (low level) 3
Lung Transplant Status ICD-10 3
Transfusion (post-admission) 2
Major Organ Transplant Status Except Lung
ICD-10 2
Multiple Sclerosis ICD-10 2
Opportunistic Infections ICD-10 2
Asthma, COPD, Chronic Lung Disease 2
Bone/Joint/Muscle Infections/Necrosis Except Aseptic Necrosis of
Bone
ICD-10 2
Chronic Myeloid Leukemia ICD-10 2
Wound Infection 2
Diabetes Mellitus 2
Diagnosis/Service Or ICD-10 Points
Endocarditis ICD-10 1
Immune Disorders ICD-10 1
End-Stage Liver Disease ICD-10 1
Diabetic Foot Ulcer 1
Narcolepsy & Cataplexy ICD-10 1
Cystic Fibrosis ICD-10 1
Tracheostomy (post-admission) 1
MDRO Code 1
Isolation (post-admission) 1
Hereditary Metabolic/Immune Disorders ICD-10 1
Morbid Obesity ICD-10 1
Radiation (post-admission) 1
Stage 4 Pressure Ulcer 1
Chronic Pancreatitis ICD-10 1
Proliferative Diabetic Retinopathy & Vitreous Hemorrhage
ICD-10 1
Diagnosis/Service Or ICD-10 Points
Other Foot Problems/Infection 1
Complications of Specific ImplantedDevice or Graft
ICD-10 1
Intermittent Bladder Catheterization 1
Inflammatory Bowel Disease ICD-10 1
Aseptic Necrosis of Bone ICD-10 1
Suctioning (post-admission) 1
Cardiorespiratory Failure & Shock ICD-10 1
Myelodysplastic Syndromes & Myelofibrosis
ICD-10 1
ALS, Other Connective Tissue Disorders ICD-10 1
Diabetic Retinopathy ICD-10 1
Feeding Tube 1
Severe Skin Burn or Condition ICD-10 1
Diagnosis/Service Or ICD-10 Points
Intractable Epilepsy ICD-10 1
Malnutrition 1
Disorders of Immunity ICD-10 1
Cirrhosis of Liver ICD-10 1
Ostomy 1
Respiratory Arrest ICD-10 1
Pulmonary Fibrosis & Other Chronic Lung Disorders
ICD-10 1
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NTA Case Mix Classification Groups
NTA Score Range NTA Case Mix Group NTA Case Mix Index12+ NA
3.259-11 NB 2.536-8 NC 1.853-5 ND 1.341-2 NE 0.960 NF 0.72
Variable Per Diem Adjustment Factor – NTA
Medicare Payment Days Adjustment Factor1-3 3.04-100 1.0
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Assessment Changes
Admission (Five-Day)
• ARD – Days 1–8• Covers entire stay
unless IPA completed
Interim Payment Assessment (IPA)
• ARD can be no later than 14 days after change in first tier
classification
• Pays from ARD until discharge except if another IPA is
completed
PPS Discharge Assessment
• ARD equals end date of the most recent stay
• Not used for payment purposes
• Section O therapy days/minutes
Three-Day Interruption Window
If readmitted within three days,
pick up where they left off
If readmitted after three days, MDS
cycle restarts
If admitted from another SNF, MDS cycle
restarts
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PDPM Impact on OBRA Assessments
• No changes to OBRA requirements•
Admission/quarterly/annual/significant change
• Monitor any changes to state Medicaid case mix• Use of
Medicare PPS MDS for case mix determination
Preparation for PDPM Today
• ICD-10 Diagnoses Coding• Goal
• Accurate documentation of diagnosis that will impact PDPM
• Steps• Assess current process • Assess staff competencies•
Start including ICD-10 codes on current MDS
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Preparation for PDPM Today
• MDS Section GG Coding• Goal
• Change focus from compliance to accuracy
• Steps• Assess process• Provide education for staff on PDPM
impact• Start coding as if payment depended on it
Preparation for PDPM Tomorrow
• Therapy Service Model• Goal
• Identification of appropriate therapy provision within the
PDPM model to achieve resident goals/outcomes
• Steps• Assess data & identify best practices• Develop
“care paths” for rehab services • Open discussion with contract
therapy providers
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Preparation for PDPM Tomorrow
• Therapy – Nursing Communication • Goal
• Develop an effective team approach to achieve resident goals
& outcomes without negatively affecting medical necessity for
skilled therapy services
• Steps• Asses current communication system between nursing
& therapy
• Evaluate current nursing restorative program
• Identify education needs for nursing staff
Preparation for PDPM Tomorrow
• Length of Stay Management• Goal
• Develop the goals for length of stay management under PDPM
• Steps• Assess length of stay data on current population by
diagnosis/clinical
condition• Evaluate impact on PDPM payment • Establish goals for
LOS management
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Final Thoughts – Making the Transition
• Develop systems, knowledge & habits on ICD-10 now
• Learn & implement strategies to improve
ADL/functionalscoring
• Revitalize & elevate restorative nursing programs
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CONTINUING PROFESSIONAL EDUCATION (CPE) CREDIT
BKD, LLP is registered with the National Association of State
Boards of Accountancy (NASBA) as a sponsor of continuing
professional education on the National Registry of CPE Sponsors.
State boards of accountancy have final authority on the acceptance
of individual courses for CPE credit. Complaints regarding
registered sponsors may be submitted to the National Registry of
CPE Sponsors through its website: www.nasbaregistry.org
The information contained in these slides is presented by
professionals for your information only & is not to be
considered as legal advice. Applying specific information to your
situation requires careful consideration of facts &
circumstances. Consult your BKD advisor or legal counsel before
acting on any matters covered.
CPE CREDIT
• CPE credit may be awarded upon verification of participant
attendance
• For questions, concerns or comments regarding CPE credit,
please email the BKD Learning & Development Department at
[email protected]
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BKD Thoughtware®
• Webinars & articles – Many CPE-eligible
• Recent articles• Compassionate Care Series• Deciphering the
Final Rule
• Upcoming webinars• 9/7 – QRP• 9/12 – Final Rule
bkd.com/hc | @BKDHC
Camille Lockhart | [email protected]
Chris Murphy | [email protected]
Joanne Jones | [email protected]